6/17/2009

And keeping in mind the Obamas penchant for intervening in markets, an activist government might wake up one morning with the purpose of intervening in the futures market with a massive short position. This would break speculators overnight and keep them out of the market for years. There is precedent for this. Back in the 80s as silver speculators literally cornered the market as the metal futures hit $50 the exchange (silver futures hit $50) opened one morning and would accept only sell orders. You could not go long and the market plummeted. This was an Exchange device which was legal while a government policy might be illegal, but we'd find out soon enough.